In the first sections of our step-by-step guide to remote work, we first explained the various forms of remote work and then addressed the associated tax and social security issues.
The following section deals with the work permit aspects of remote work. Here, too, it is necessary to distinguish between the basic forms of remote work. As already described in sections 2 and 3, these are, in essence:
- Remote work with predominant activity at the foreign place of residence
In this case, for example, a Swiss company hires an employee who primarily and continuously works "remotely" at a foreign place of residence. The employee receives an employment contract with the Swiss company that is adapted to foreign law. In general, the employee only comes to Switzerland for a few working days per month and otherwise works from a home office abroad.
- Remote work as a short-term activity abroad
In these cases, employees generally work in the country of employment. This means that the employees not only have a Swiss employment contract but also work mainly in Switzerland. If these employees now wish to work abroad for a shorter period, this is also referred to as "remote work". This type of remote work is often based on the employee's initiative and desire. The distinction between this kind of remote work and classic short-term assignments is fluid, and there are many recognizable parallels.
From the company's perspective, both types of remote work require additional clarification and, depending on the situation, can also entail considerable administrative steps.
Especially if remote work is only a short-term activity abroad and the employee goes abroad for a few days, weeks, or even months (on their own initiative), companies are generally very interested in minimizing the administrative burden.
Version I: Remote work with predominant activity at the foreign place of residence
Employees who mainly work in their foreign country of residence mostly require a work permit if they come to Switzerland for a few working days (or for longer periods). If the employees have EU/EFTA citizenship, the registration procedure can be used for up to 90 days per year. Some cantons also allow EU/EFTA nationals with a foreign residence and a Swiss employer to obtain a so-called 120-day permit.
There is still a regulatory gap for third-country nationals with Swiss employers who mainly live and work abroad. The registration procedure cannot be used on the basis of nationality (non-EU/EFTA). Some, but not yet all cantons, have recognized the problem in practice, so that a 120-day permit may also be obtained for these third-country nationals.
Excursus: In the case of a foreign employer and occasional working days in Switzerland, the registration procedure can be carried out for EU/EFTA nationals and, under certain conditions, also for non-EU/EFTA nationals, provided the employer is based in an EU or EFTA member state. In the event that the employer is based in a non-EU or EFTA member state, all employees, regardless of their nationality, can work in Switzerland for 8 days in a calendar year without having to obtain a work permit. The 120-day permit can be issued for both EU/EFTA nationals and third-country nationals.
Version II: Remote work as a short-term activity abroad
If employees work abroad for a short period of time, the specific formal requirements must be checked depending on the destination country and the employee's nationality. While Swiss and EU citizens, for example, can work in other EU countries relatively easily, country-specific registration regulations ("Posted Workers Directive") must still be observed. France and Austria in particular (but not only) are known for their rigid interpretation of these reporting regulations, while the same EU directive is still handled relatively laxly in Germany.
It should also be noted that third-country nationals with Swiss residency are not allowed to work in other EU countries just as easily as their colleagues with Swiss or EU/EFTA citizenship. This is because, in addition to the above-mentioned registration requirements, a work permit for other EU countries is generally required.
For short-term work assignments in so-called third countries (i.e., outside the EU/EFTA), the necessary formal requirements for work permits should always be checked and observed. While some countries are accommodating when it comes to short-term remote work and do not have any special work permit regulations, many countries require work visas to be obtained locally.
Numerous visas for "digital nomads" and remote work have been introduced in recent years. It is advisable to review these options for employee-initiated stays abroad and, where appropriate, select the destination countries based on the ease of obtaining a visa.
Remote work undoubtedly remains a challenging issue. Nevertheless, it is worth taking a close look at this topic. On the one hand, it makes it possible to recruit qualified specialists abroad, and on the other, it offers companies the opportunity to position themselves as modern employers with corresponding benefits for their employees.
It is encouraging to see that experience with remote work has increased significantly in recent years. With the help of the expertise of experienced consultants, it enables companies to precisely analyze whether and how remote work can be implemented in their organization.
- Chapter 1: A question of definition - What is remote work anyway?
- Chapter 2: Social security for remote work abroad
- Chapter 3: Income Taxes for remote work abroad
- Chapter 4: Work permits for international remote work
- Chapter 5 (Monthly Special): Detailed practical cases of remote work for HR departments regarding income taxes, social insurance, work permits, payroll, and employment contracts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
